Introduction

We offer products to improve the health, vigour and yield of major field crops such as corn, soybeans, cotton and rice, as well as speciality crops such as fruits and vegetables. We operate globally through subsidiaries, distributors and supply agreements with major industry partners.

Our innovative, patent-protected biological products help growers to protect their crops from stress and diseases, and to produce higher quality fruit and vegetables, with a favourable environmental profile.

  • Leading provider of proprietary biological products for agriculture
  • Commercial business growing at 20% CAGR; generating cash from 2018 on
  • Validated technology platforms with strong IP estate: Plant Response Elicitors – PREtec
  • Launching PREtec products from 2021 onwards
  • Management highly experienced in agricultural R&D, licensing and sales
  • Targeting cash positive in 2020 within existing cash reserves; strict control of expenses

We offer products to improve the health, vigour and yield of major field crops such as corn, soybeans, cotton and rice, as well as speciality crops such as fruits and vegetables. We operate globally through subsidiaries, distributors and supply agreements with major industry partners.

Our innovative, patent-protected biological products help growers to protect their crops from stress and diseases, and to produce higher quality fruit and vegetables, with a favourable environmental profile.

  • Leading provider of proprietary biological products for agriculture
  • Commercial business growing at 20% CAGR; generating cash from 2018 on
  • Validated technology platforms with strong IP estate: Plant Response Elicitors – PREtec
  • Launching PREtec products from 2021 onwards
  • Management highly experienced in agricultural R&D, licensing and sales
  • Targeting cash positive in 2020 within existing cash reserves; strict control of expenses

Highlights for 2018

Revenue

$8,128

($'000)

Graph 01 revenue.png

Cash and Investments

$4,284

($'000)

Graph 02 Cash.png
  • Harpin αß was launched into sugarcane in Brazil in February 2018, which is a 10 million hectares opportunity. Over 20,000 hectares treated so far, a promising start.
  • Harpin αß was launched into US corn in September 2018, which is a 90 million acre market. First use in the field will be in the second quarter of 2019.
  • The Company won the global award of Best New Biological Product for work on Citrus in Spain.
  • Nine companies, including all five of the top global agricultural/seed companies, tested peptides from our PREtec platforms during 2018.
  • PREtec product pipeline defined, targeting $5 billion market opportunities.
  • Regulatory submission to EPA for first PREtec peptide made in August 2018.
  • Substantial progress made in developing cost-effective production of PREtec peptides.
  • New strategy for commercialisation of PREtec: both technology licensing and direct sales to distributors.

On 27 February 2018, the Group successfully raised $6.7 million (net of costs) which was well supported by existing shareholders and brought in a number of new institutional investors.

  • Revenue from commercial products in 2018 increased by 5% to $8.1 million (2017: $7.7 million); Strong external sales growth in the Americas (up 105%) was offset by weaker sales in Rest of World due to slower draw-down of inventory.
  • Sales of core Harpin αß products increased by 10% (8% in constant currency*), driven by broadly based growth in many countries. Harpin αß and Myconate® products represented 68% of sales in 2018 (2017: 69%).
  • Gross Margin increased to 65% (2017: 62%).
  • Adjusted LBITDA** reduced to $5.4 million (2017: $5.5 million).
  • Cash, cash equivalents and investments at 31 December 2018 were $4.3 million (2017: $3.9 million).

* Constant currency is defined on page 11.
** Adjusted LBITDA: Loss before Interest, tax, depreciation, amortisation, share based payments and intercompany foreign exchange.

Revenue

$8,128

($'000)

Graph 01 revenue.png

Cash and Investments

$4,284

($'000)

Graph 02 Cash.png
  • Harpin αß was launched into sugarcane in Brazil in February 2018, which is a 10 million hectares opportunity. Over 20,000 hectares treated so far, a promising start.
  • Harpin αß was launched into US corn in September 2018, which is a 90 million acre market. First use in the field will be in the second quarter of 2019.
  • The Company won the global award of Best New Biological Product for work on Citrus in Spain.
  • Nine companies, including all five of the top global agricultural/seed companies, tested peptides from our PREtec platforms during 2018.
  • PREtec product pipeline defined, targeting $5 billion market opportunities.
  • Regulatory submission to EPA for first PREtec peptide made in August 2018.
  • Substantial progress made in developing cost-effective production of PREtec peptides.
  • New strategy for commercialisation of PREtec: both technology licensing and direct sales to distributors.

On 27 February 2018, the Group successfully raised $6.7 million (net of costs) which was well supported by existing shareholders and brought in a number of new institutional investors.

  • Revenue from commercial products in 2018 increased by 5% to $8.1 million (2017: $7.7 million); Strong external sales growth in the Americas (up 105%) was offset by weaker sales in Rest of World due to slower draw-down of inventory.
  • Sales of core Harpin αß products increased by 10% (8% in constant currency*), driven by broadly based growth in many countries. Harpin αß and Myconate® products represented 68% of sales in 2018 (2017: 69%).
  • Gross Margin increased to 65% (2017: 62%).
  • Adjusted LBITDA** reduced to $5.4 million (2017: $5.5 million).
  • Cash, cash equivalents and investments at 31 December 2018 were $4.3 million (2017: $3.9 million).

* Constant currency is defined on page 11.
** Adjusted LBITDA: Loss before Interest, tax, depreciation, amortisation, share based payments and intercompany foreign exchange.

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Review of 2018

Dr Christopher Richards

Executive Chairman and Interim Chief Executive Officer

“With successful launches of Harpin αß in cane and in corn in 2018, we have built the foundations for accelerated commercial growth. Our pipeline of new products from PREtec targets opportunities worth $5 billion, with launches from 2021 onwards.”

2018 Sales split by region

($'000)

Graph 04 Sales split.png

Jeffrey Hovey

Chief Financial Officer

“Sales increased 5% to $8.1 million. Plant Health Care experienced impressive growth in our Americas segment up 105%.”

PROPRIETARY PRODUCT SALES

Revenue

($'000)

Graph 03 revenue.png

Dr Christopher Richards

Executive Chairman and Interim Chief Executive Officer

“With successful launches of Harpin αß in cane and in corn in 2018, we have built the foundations for accelerated commercial growth. Our pipeline of new products from PREtec targets opportunities worth $5 billion, with launches from 2021 onwards.”

2018 Sales split by region

($'000)

Graph 04 Sales split.png

Jeffrey Hovey

Chief Financial Officer

“Sales increased 5% to $8.1 million. Plant Health Care experienced impressive growth in our Americas segment up 105%.”

PROPRIETARY PRODUCT SALES

Revenue

($'000)

Graph 03 revenue.png

A Year of Growth

Banner Image.jpg

What We Do

Farmers confront many challenges in providing food for a rapidly growing and more prosperous world. These challenges include reducing the use of potentially harmful agrochemical products. Biological products are becoming an increasingly important part of the solution because of the benefits they offer. 

Commercial

Plant Health Care’s Commercial business is driven by sales of Harpin αß, a recombinant protein which acts as a powerful biostimulant, promoting the yield and quality of crops. The Group sells the proprietary soil treatment Myconate in selected countries. The Group sells Harpin αß and Myconate through specialist distributors around the world. In Mexico, the Group also distributes third-party biological products.

NEW TECHNOLOGY

Plant Health Care’s New Technology is focused on PREtec – plant response elicitors. These are peptides (short chains of amino acids) which stimulate plants to increase yield and resist disease. The Group has so far launched four platforms of PREtec, which have been under evaluation by nine potential licence partners in 2018.